Aditya Infotech Limited has successfully incorporated its wholly owned subsidiary in Taiwan, marking a significant milestone in the company's international expansion strategy. The subsidiary, named Aditya Infotech Taiwan Co. Ltd., was officially incorporated on February 02, 2026, following the Board of Directors' approval granted on September 18, 2025.

Subsidiary Details and Investment

The newly incorporated entity represents a strategic investment in research and development capabilities for the parent company. Key details of the incorporation are outlined below:

The initial capital investment of NT$ 5 million has been provided in cash form, ensuring immediate operational capability for the subsidiary. This investment structure reflects the company's commitment to establishing a strong foundation for its Taiwan operations.

Business Focus and Operations

Aditya Infotech Taiwan Co. Ltd. will primarily engage in research and development activities related to security and surveillance equipment. This strategic focus aligns with the parent company's core business operations and expertise in the technology sector. The subsidiary's establishment in Taiwan positions the company to leverage the region's advanced technological infrastructure and skilled workforce for innovation in security solutions.

The incorporation required no specific governmental or regulatory approvals, facilitating a streamlined establishment process. This regulatory environment supports the company's ability to commence operations efficiently and focus on its primary research and development objectives.

Strategic Implications

The establishment of this wholly owned subsidiary represents Aditya Infotech Limited's expansion into international markets, specifically targeting the Asia-Pacific region. Taiwan's strategic location and technological capabilities make it an ideal base for research and development activities in the security and surveillance sector.

The company has fulfilled all disclosure requirements under Regulation 30 of SEBI Listing Regulations, ensuring transparency with stakeholders and regulatory compliance. This incorporation strengthens Aditya Infotech's global presence while maintaining full operational control through 100% ownership of the subsidiary.

Aditya Infotech Limited has achieved a significant victory in its ongoing income tax litigation, receiving substantial relief from the Commissioner of Income Tax (Appeals) for Assessment Year 2019-20. The favorable order substantially reduces the company's tax liability and marks a major development in the dispute that originated from an assessment order dated September 30, 2021.

Major Relief in Tax Appeal

The Commissioner of Income Tax (Appeals) has substantially allowed the company's appeal, providing significant relief on the original tax demand. The order received on January 15, 2026, addresses the assessment made under section 143(3) of the Income Tax Act for alleged additional income.

Background of the Litigation

The dispute originated when the Assessing Officer raised a tax demand of approximately ₹18.96 crores, including interest, based on alleged additional income of ₹40.38 crores for Assessment Year 2019-20. The company challenged this assessment order dated September 30, 2021, by filing an appeal before the Commissioner of Income Tax (Appeals).

As a precautionary measure, the company had already deposited ₹3.80 crores to secure a stay of demand until the disposal of the appeal. This strategic move ensured business continuity while the legal proceedings were underway.

Order Details and Next Steps

The Commissioner's order, received through email on January 15, 2026, at 18:56 IST, carries the DIN number ITBA/APL/M/250/2025-26/1084805822(1). The order allows deletions aggregating to ₹36.78 crores from the original addition, resulting in a net addition of only ₹3.60 crores.

The company maintains that the remaining ₹3.60 crores represents legitimate expenses allowable under the Income Tax Act. Consequently, Aditya Infotech intends to file an appeal before the appropriate authority to challenge this residual addition.

Financial Impact Assessment

According to the company's regulatory filing, the demand and penalty have no material impact on its financials or operational activities. The substantial relief obtained through the appeal process significantly reduces the potential financial burden on the company.

The final tax amount, including interest and penalty on the reduced addition of ₹3.60 crores, is yet to be assessed by the assessing officer. Given that the company has already deposited ₹3.80 crores, it appears well-positioned to handle any residual liability.

Regulatory Compliance

The company has fulfilled its disclosure obligations under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. The announcement was signed by Company Secretary and Compliance Officer Roshni Tandon and will be hosted on the company's website at www.adityagroup.com for stakeholder access.